<p>Ahead of Organization of Petroleum Exporting Countries (OPEC+) meet in Vienna on November 26, Saudi Arabia is reportedly preparing to extend oil production cuts into 2024 as the bloc appears to ramp up its response to falling oil prices and regional tumult with larger geo-economic consequences amid Israel-Hamas war.</p>

<p>As of 2023, OPEC+ have 22 members which include 13 OPEC members (Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela) and 9 Non-OPEC members&nbsp; including Russia, Mexico, Sudan, South Sudan, Azerbaijan and&nbsp;Kazakhstan. The Non-OPEC countries which export&nbsp;crude oil along with 13 OPEC members are termed as OPEC+ countries.&nbsp;</p>

<p>Earlier this week on Thursday (Nov 16), the oil prices slumped to their lowest since July, reflecting the pressure on OPEC+ group to consider further steps — extend or deepen — over their daily oil production capabilities.&nbsp;</p>

<p>Brent crude, the conventional international oil benchmark dropped 5.2 per cent on Thursday (Nov 16) as the prices went under $77 per barrel. Besides, in the backdrop of Russian offensive in Ukraine launched in February 2022, the crude oil price cap has been imposed at $60 per barrel for Russian oil exports, a benchmark Moscow has managed to evade.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/world/the-capitals-bogotas-great-amazon-miracle-riyadhs-oil-games-in-vienna-and-more-603219">The Capitals: Bogota's great Amazon miracle, Riyadh's oil games in Vienna and more</a></strong>&nbsp;</p>

<p>After the oil prices hit a four-month low of $77 a barrel this week, Financial Times cited four people familiar with the Saudi government’s thinking to add that OPEC+ was highly likely to extend its 1mn barrel-a-day cut at least until the spring next year.</p>

<h2><strong>Why the Saudi-led&nbsp;OPEC+ is considering&nbsp;oil cuts?</strong></h2>

<p>The primary cause is the oil price drop. But the OPEC+ members are also reportedly incensed over Israel-Hamas war and unprecedented humanitarian crisis that has gripped Gaza Strip, one of the world's most densely populated regions.&nbsp;</p>

<p>Kuwait, Algeria and Iran are among the OPEC+ members most agitated by the conflict, Financial Times reported.&nbsp;</p>

<p>"You should not underestimate the level of anger there is and the pressure leaders in the Gulf feel from their populations to be seen to respond in some manner," a person close to senior OPEC figures in West Asia was quoted as saying by the publication.</p>

<p><strong>Also watch |&nbsp;OPEC + leaders emphasise investment for stable energy transition</strong></p>

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<p>While there won't be a repeat of the oil shock of the 1970s when the West Asian states halted oil exports to the West.</p>

<p>But, the person cited by the Financial Times further added: "People have become complacent about the potential to tighten oil supplies to send a subtle message, which will be well understood both in the streets and Washington DC."</p>

<p><i>(With inputs from agencies)</i></p>


Ahead of Organization of Petroleum Exporting Countries (OPEC+) meet in Vienna on November 26, Saudi Arabia is reportedly preparing to extend oil production cuts into 2024 as the bloc appears to ramp up its response to falling oil prices and regional tumult with larger geo-economic consequences amid Israel-Hamas war.

Ahead of Organization of Petroleum Exporting Countries (OPEC+) meet in Vienna on November 26, Saudi Arabia is reportedly preparing to extend oil production cuts into 2024 as the bloc appears to ramp up its response to falling oil prices and regional tumult with larger geo-economic consequences amid Israel-Hamas war. As of 2023, OPEC+ have 22 members which include 13 OPEC members (Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela) and 9 Non-OPEC members including Russia, Mexico, Sudan, South Sudan, Azerbaijan and Kazakhstan. The Non-OPEC countries which export crude oil along with 13 OPEC members are termed as OPEC+ countries. Earlier this week on Thursday (Nov 16), the oil prices slumped to their lowest since July, reflecting the pressure on OPEC+ group to consider further steps — extend or deepen — over their daily oil production capabilities. Brent crude, the conventional international oil benchmark dropped 5.2 per cent on Thursday (Nov 16) as the prices went under $77 per barrel. Besides, in the backdrop of Russian offensive in Ukraine launched in February 2022, the crude oil price cap has been imposed at $60 per barrel for Russian oil exports, a benchmark Moscow has managed to evade. Also read | The Capitals: Bogota's great Amazon miracle, Riyadh's oil games in Vienna and more After the oil prices hit a four-month low of $77 a barrel this week, Financial Times cited four people familiar with the Saudi government’s thinking to add that OPEC+ was highly likely to extend its 1mn barrel-a-day cut at least until the spring next year. Why the Saudi-led OPEC+ is considering oil cuts? The primary cause is the oil price drop. But the OPEC+ members are also reportedly incensed over Israel-Hamas war and unprecedented humanitarian crisis that has gripped Gaza Strip, one of the world's most densely populated regions. Kuwait, Algeria and Iran are among the OPEC+ members most agitated by the conflict, Financial Times reported. "You should not underestimate the level of anger there is and the pressure leaders in the Gulf feel from their populations to be seen to respond in some manner," a person close to senior OPEC figures in West Asia was quoted as saying by the publication. Also watch | OPEC + leaders emphasise investment for stable energy transition × While there won't be a repeat of the oil shock of the 1970s when the West Asian states halted oil exports to the West. But, the person cited by the Financial Times further added: "People have become complacent about the potential to tighten oil supplies to send a subtle message, which will be well understood both in the streets and Washington DC." (With inputs from agencies)

Return to 1970s? Saudi-led OPEC+ deliberating further oil cuts amid Israel-Hamas war, says report

<p>The Kremlin said on Wednesday (September 6) that Russian President Vladmir Putin had a phone conversation with Saudi Crown Prince Mohammed bin Salman. It also said that leaders agreed recent agreement to cut energy supplies had stabilised the global energy markets.</p>

<p>Saudi Arabia and Russia are global leaders in oil production. The countries announced on Tuesday that voluntary oil supply cuts will be extended till the end of the year.</p>

<p>Russia will roll over its decision to reduce oil exports by 300,000 barrels per day (bpd), while Saudi Arabia will extend its voluntary oil output cut of 1 million bpd.</p>

<p><strong>Watch | Kremlin: Nothing to say on report about Putin-Kim Jong-Un meet</strong></p>

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<p>Kremlin said Putin and Mohammed bin Salman both, were highly satisfied with cooperation between the countries within OPEC+ framework. OPEC+ is the group of leading oil producers.</p>

<p>"It was noted that the agreements reached on reducing oil production, combined with voluntary commitments to limit the supply of the commodity, make it possible to ensure the stability of the global energy market," the Kremlin said in a readout of the call.</p>

<p>In October last year, OPEC+ decided to reduce output by two million barrels per day. The decision had enraged the US who at the time had accused Saudi Arabia of siding with Russia amid the Ukraine war.</p>

<p>Oil prices spiked in July, the first month of Saudi-only cut taking effect. The prices cleared USD 80 per barrel threshold which analysts often describe as price Saudi Arabia needs to balance it budget.</p>

<p><strong>Also Read | <a href="https://www.wionews.com/world/zelensky-claims-russian-strike-kills-at-least-16-in-east-ukraine-market-632988">Zelensky claims Russian strike kills at least 16 in east Ukraine market</a></strong></p>

<p>Daily oil production in Saudi Arabia is approximately nine million barrels, well below its reported capacity of 12 million bpd.</p>

<p>Saudi oil firm Aramco announced profits of USD 30.08 billion in August for the second quarter of 2023. There was a fall of 38 per cent &nbsp;in the profits from the same period last year. The prices had surged last year after Russia invaded Ukraine.</p>

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The Kremlin said on Wednesday (September 6) that Russian President Vladmir Putin had a phone conversation with Saudi Crown Prince Mohammed bin Salman. It also said that leaders agreed recent agreement to cut energy supplies had stabilised the global energy markets.

The Kremlin said on Wednesday (September 6) that Russian President Vladmir Putin had a phone conversation with Saudi Crown Prince Mohammed bin Salman. It also said that leaders agreed recent agreement to cut energy supplies had stabilised the global energy markets. Saudi Arabia and Russia are global leaders in oil production. The countries announced on Tuesday that voluntary oil supply cuts will be extended till the end of the year. Russia will roll over its decision to reduce oil exports by 300,000 barrels per day (bpd), while Saudi Arabia will extend its voluntary oil output cut of 1 million bpd. Watch | Kremlin: Nothing to say on report about Putin-Kim Jong-Un meet × Kremlin said Putin and Mohammed bin Salman both, were highly satisfied with cooperation between the countries within OPEC+ framework. OPEC+ is the group of leading oil producers. "It was noted that the agreements reached on reducing oil production, combined with voluntary commitments to limit the supply of the commodity, make it possible to ensure the stability of the global energy market," the Kremlin said in a readout of the call. In October last year, OPEC+ decided to reduce output by two million barrels per day. The decision had enraged the US who at the time had accused Saudi Arabia of siding with Russia amid the Ukraine war. Oil prices spiked in July, the first month of Saudi-only cut taking effect. The prices cleared USD 80 per barrel threshold which analysts often describe as price Saudi Arabia needs to balance it budget. Also Read | Zelensky claims Russian strike kills at least 16 in east Ukraine market Daily oil production in Saudi Arabia is approximately nine million barrels, well below its reported capacity of 12 million bpd. Saudi oil firm Aramco announced profits of USD 30.08 billion in August for the second quarter of 2023. There was a fall of 38 per cent in the profits from the same period last year. The prices had surged last year after Russia invaded Ukraine. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Putin, Mohammed bin Salman talk over phone, are satisfied about oil supply cuts: Kremlin

<p dir="ltr">Oil prices experienced a significant boost, surging over 2 percent on Monday, following an unexpected announcement by Saudi Arabia, the world's largest oil exporter, that it would&nbsp;slash its production by an additional 1 million barrels per day from July onwards.</p>

<p dir="ltr">Saudi Arabia's move is being seen as an effort to effectively countering the prevailing macroeconomic challenges that have weighed down the oil market. Following the announcement, Brent crude futures soared to $77.64 a barrel, marking a $1.51 increase. On the other hand, U.S. West Texas Intermediate crude climbed to $73.15 a barrel, representing a gain of $1.41, as per a Reuters report.&nbsp;</p>

<p>Saudi Arabia's energy ministry announced on Sunday that the country's oil production would drop to 9 million barrels per day in July, down from around 10 million barrels per day in May. This reduction constitutes the kingdom's most substantial cut in years and adds to the broader agreement by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to limit oil supply until 2024. The voluntary production cut by Saudi Arabia aims to combat the challenges faced by the oil market, which has been grappling with persistently low prices.</p>

<p>The unexpected announcement by Saudi Arabia has injected renewed optimism into the oil market.</p>

<p>Analysts predict that the additional cut, combined with the existing production limitations, could create a market deficit exceeding 3 million barrels per day in July. Consequently, this deficit is expected to drive prices higher in the coming weeks. Consultancy firm Rystad Energy told Reuters that there is a&nbsp;potential for a tighter oil market in the second half of the year, reinforcing the positive market sentiment triggered by Saudi Arabia's decision.</p>

<p><strong>The Implications of the OPEC+ Agreement</strong></p>

<p>The agreement among OPEC+ nations to extend production cuts until 2024 is seen as a collective effort to bolster oil prices. However, the impact of the production cuts&nbsp;may be limited due to adjustments made to quotas for certain countries. Russia, Nigeria, and Angola have already lowered their targets to align with their actual production levels, potentially diluting the overall impact of the cuts. Conversely, the United Arab Emirates (UAE) has been permitted to raise its output targets by approximately 200,000 barrels per day, reaching 3.22 million barrels per day. This decision has come at the expense of African nations, which have had their unused quotas reduced under the new agreement.</p>

<p>The number of operating oil rigs plummeted by 15 to a record low of 555 last week in the United States, according to the weekly report by Baker Hughes Co cited by Reuters. This decline reflects the industry's response to weaker prices, increased costs, and a shift toward prioritizing shareholder repayments over drilling activities. These factors have contributed to a slowdown in drilling operations since December.</p>

<p>(With inputs from Reuters)</p>


Oil prices experienced a significant boost, surging over 2 percent on Monday, following an unexpected announcement by Saudi Arabia, the world's largest oil exporter, that it would slash its production by an additional 1 million barrels per day from July onwards.

Oil prices experienced a significant boost, surging over 2 percent on Monday, following an unexpected announcement by Saudi Arabia, the world's largest oil exporter, that it would slash its production by an additional 1 million barrels per day from July onwards. Saudi Arabia's move is being seen as an effort to effectively countering the prevailing macroeconomic challenges that have weighed down the oil market. Following the announcement, Brent crude futures soared to $77.64 a barrel, marking a $1.51 increase. On the other hand, U.S. West Texas Intermediate crude climbed to $73.15 a barrel, representing a gain of $1.41, as per a Reuters report. Saudi Arabia's energy ministry announced on Sunday that the country's oil production would drop to 9 million barrels per day in July, down from around 10 million barrels per day in May. This reduction constitutes the kingdom's most substantial cut in years and adds to the broader agreement by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to limit oil supply until 2024. The voluntary production cut by Saudi Arabia aims to combat the challenges faced by the oil market, which has been grappling with persistently low prices. The unexpected announcement by Saudi Arabia has injected renewed optimism into the oil market. Analysts predict that the additional cut, combined with the existing production limitations, could create a market deficit exceeding 3 million barrels per day in July. Consequently, this deficit is expected to drive prices higher in the coming weeks. Consultancy firm Rystad Energy told Reuters that there is a potential for a tighter oil market in the second half of the year, reinforcing the positive market sentiment triggered by Saudi Arabia's decision. The Implications of the OPEC+ Agreement The agreement among OPEC+ nations to extend production cuts until 2024 is seen as a collective effort to bolster oil prices. However, the impact of the production cuts may be limited due to adjustments made to quotas for certain countries. Russia, Nigeria, and Angola have already lowered their targets to align with their actual production levels, potentially diluting the overall impact of the cuts. Conversely, the United Arab Emirates (UAE) has been permitted to raise its output targets by approximately 200,000 barrels per day, reaching 3.22 million barrels per day. This decision has come at the expense of African nations, which have had their unused quotas reduced under the new agreement. The number of operating oil rigs plummeted by 15 to a record low of 555 last week in the United States, according to the weekly report by Baker Hughes Co cited by Reuters. This decline reflects the industry's response to weaker prices, increased costs, and a shift toward prioritizing shareholder repayments over drilling activities. These factors have contributed to a slowdown in drilling operations since December. (With inputs from Reuters)

Oil prices get a 'royal' boost: Oil prices soar after Saudi's production cuts

The U.S. is furious at Saudi Arabia for reducing its oil output. Saudi Arabia says the decision was taken for economic reasons. Ghadi Francis tells you more on The West Asia Post.

The West Asia Post | Tensions in U.S.-Saudi Arabia ties after OPEC oil cut

US President Joe Biden has vowed consequences for Saudi Arabia after last week's decision announced by the OPEC+ group led by Riyadh that it would cut all production despite Washington's strong objections.

Biden vows consequences for Saudi Arabia over OPEC oil output cut

OPEC and its allies led by Russia meet on Saturday to approve extending record oil production cuts and to push countries such as Iraq and Nigeria to comply better with existing curbs.

OPEC, Russia meet to extend record oil cuts

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